Trane Technologies (Trane Technologies) ROCE % : 19.90% (As of Dec. 2023)

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What is Trane Technologies ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Trane Technologies's annualized ROCE % for the quarter that ended in Dec. 2023 was 19.90%.

Trane Technologies ROCE % Historical Data

The historical data trend for Trane Technologies's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Trane Technologies ROCE % Chart

Trane Technologies Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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11.38

10.57

14.93

18.64

21.78

Trane Technologies Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															18.81	14.06	25.11	25.31	19.90

Trane Technologies ROCE % Calculation

Trane Technologies's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	2801.8	/	( ( (18081.6 - 5686.8)	+	(19391.9 - 6053.5) )	/ 2 )
	=	2801.8	/	( (12394.8	+	13338.4)	/ 2 )
	=	2801.8	/	12866.6
	=	21.78 %

Trane Technologies's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	2688.8	/	( ( (18903.2 - 5214.2)	+	(19391.9 - 6053.5) )	/ 2 )
	=	2688.8	/	( ( 13689	+	13338.4 )	/ 2 )
	=	2688.8	/	13513.7
	=	19.90 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Trane Technologies (NYSE:TT) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Trane Technologies ROCE % Related Terms

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Trane Technologies (Trane Technologies) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Trane Technologies PLC (NYSE:TT) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

TT:Mexico 0Y2S:UK 2IS:Germany 2IS:Germany I1RP34:Brazil

Address

170/175 Lakeview Drive, Airside Business Park, Swords County, Dublin, IRL

Website

https://www.tranetechnologies.com

Trane Technologies manufactures and services commercial and residential HVAC systems and transportation refrigeration solutions under its prominent Trane, American Standard, and Thermo King brands. The $16 billion company generates approximately 70% of sales from equipment and 30% from parts and services. While the firm is domiciled in Ireland, North America accounts for over 70% of its revenue.

Executives

Mark Majocha	officer: VP & Chief Accounting Officer	C/O TRANE TECHNOLOGIES COMPANY LLC, 800-E BEATY STREET, DAVIDSON NC 28036
David S Regnery	director, officer: Chair and CEO	C/O INTERSOLL-RAND COMPANY, 800-E BEATY STREET, DAVIDSON NC 28036
Raymond D Pittard	officer: Executive Vice President	800-E BEATY STREET, DAVIDSON NC 28036
Keith A Sultana	officer: Senior Vice President	C/O INGERSOLL RAND COMPANY, 800-E BEATY STREET, DAVIDSON NC 28036
Mairead Magner	officer: Senior Vice President	800-E BEATY STREET, DAVIDSON NC 28036
De Jesus Assis Ana Paula	director	C/O TRANE TECHNOLOGIES COMPANY LLC, 800-E BEATY STREET, DAVIDSON NC 28036
Evan M Turtz	officer: Senior Vice President	C/O INGERSOLL-RAND COMPANY, 800-E BEATY STREET, DAVIDSON NC 28036
Linda P Hudson	director
Paul A Camuti	officer: Senior Vice President	800-E BEATY STREET, DAVIDSON NC 28036
Christopher J Kuehn	officer: Vice President & Controller	800-E BEATY STREET, DAVIDSON NC 28036
John A Hayes	director	C/O BALL CORP, 10 LONGS PEAK DR, BROOMFIELD CO 80021-2510
Melissa N. Schaeffer	director	1940 AIR PRODUCTS BLVD., ALLENTOWN PA 18106
Mark R George	director	650 W PEACHTREE ST NW, ATLANTA GA 30308
Marcia J Avedon	officer: Senior Vice President	C/O INGERSOLL-RAND COMPANY, 800-E BEATY STREET, DAVIDSON NC 28036
Michael W Lamach	director, officer: President and CEO	C/O INGERSOLL-RAND CO, 800-E BEATY STREET, DAVIDSON NC 28036